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Dunlop India Regains Disputed Factory Land

Dunlop India has been granted a favourable ruling in the dispute over an eight acre section of land at its Chennai facility. The company has release a press statement outlining the recent decision made by the court of the sub-divisional magistrate.

“M/S VGN Enterprises, represented by V N Devadoss has forcibly and wrongfully dispossessed the position of Dunlop India Ltd on July 30, 2007. I therefore u/s 145 (4) CrPC order that the possession of the above lands shall be restored to M/S Dunlop India Ltd.”

Mr. Devadoss claims that his company, VGN Enterprises, legitimately purchased the land from Dunlop India’s former owners in 2004.

30th August 2007/by Tyrepress Editors

Goodyear Ordered to Pay US$15 Million in Accident Ruling

A woman in the US state of South Carolina has been awarded $15 million after a federal jury concluded that Goodyear Dunlop Tires North America was responsible for the accident that left her with severe brain damage. After deliberating for 15 hours the jury returned with the decision that the tyre fitted to the motorcycle on which Michigan woman Trish McCloud was riding as pillion in May 2002 contained a defect that caused it to deflate. The motorcycle flipped and crashed, resulting in Ms McCloud striking her head on the footpath with so great a force that her helmet was not sufficient to prevent serious brain injury. The driver of the motorcycle was not seriously injured.

“The jury agreed with us that the tyre was made with a defect that caused it to fail prematurely,” stated one of Ms McCloud’s attorneys, Randy James. “Goodyear Dunlop refused to take responsibility for this tragedy and, instead, tried to blame others for its defective tyre.” Goodyear spokesman Scott Bachman said the company feels for the McCloud family but believes the accident resulted from a combination of the tyre being insufficiently inflated and too much weight being placed upon the motorcycle. He added that Goodyear is reviewing the verdict and is yet to decide its next course of action.

30th August 2007/by Tyrepress Editors

Goodyear a Popular Choice for Safety Conscious Coach Operators

Given their already greater stopping distances and relative lack of nimbleness, there is no question that heavy vehicles need to be fitted with tyres appropriate for the season. This particularly applies to large passenger-carrying vehicles and those that are taken abroad.

Goodyear reports that it is expecting further demand for its Winter ‘UltraGrip’ tyres this year, particularly with bus and coach operators who have a desire to maximise passenger safety on continental ski trips and European tours. Last Winter the performance of the 315/80R22.5 Goodyear UltraGrip WTS (Winter Tread Steer) and WTD (Winter Tread Drive) tyres on coaches used for continental tours resulted in a significant upswing in demand for these tyres.

Among the noteworthy features the Ultra Grip WTD (Winter Traction Drive) offers is the tread pattern. According to the tyremaker this is the first tyre to incorporate a new Goodyear patented design its calls 3D-BIS Technology (Block Interlocking System), which features trapezoidal shaped blades. The 3D-BIS Technology blades are fine sipes with three-dimensional wave-like shapes – perhaps best described as looking like waffles. The unique shape of these blades causes the tread blocks to lock together when the tyre deforms, creating a more rigid and stable footprint.

29th August 2007/by Tyrepress Editors

Tyremakers Back to Work in South Africa

A decision that resounded as music to the ears of South Africa’s tyre industry was announced on August 17 – the month long strike that brought production at factories belonging several tyre majors to a halt has been resolved. Following a breakthrough in negotiations workers at Bridgestone, Continental, Dunlop, Firestone and Goodyear agreed to return to work on August 21.

The National Union of Metalworkers of South Africa (Numsa) urged all its members to meet at their workplace on August 20 for a report about the wage talks. “Numsa is of the view that it has made progress. It will discuss with its constituencies on Monday whether the current offer on the table does constitute a settlement,” said Numsa regional secretary Irvin Jim. The offer includes an eight per cent across-the-board increase, 8.5 per cent for minimum salary employees, and 7.5 per cent for next year and the year after.

20th August 2007/by Tyrepress Editors

Dunlop SA Introduces Hi Tech Sales Tool

Today people expect more than a basic over the counter ‘buy and sell’ retail experience. In our technology-driven world, where a cell phone doubles as a video camera, home computer and music player, where we can pause and replay television programmes at the push of a button, there is no such thing as a passive consumer anymore. Instead people demand to be entertained, involved and informed every step of the way. No wonder interactivity has become the latest buzzword in the modern sales environment internationally.

In South Africa, Dunlop Tyres has responded to this new phenomenon by initiating a new dimension to the customer experience. At Dunlop dealers countrywide, they have developed and launched a state-of-the-art Dunlop Interactive Display Module. It is claimed to be the first of its kind in the region’s tyre business.
Jenny Soons, advertising manager at Dunlop elaborates. “Enhanced interaction with the consumer is a global retail trend, providing product information in an entertaining way, and this is what the Dunlop Interactive Display Module does – it adds interest and provides consumers with an enjoyable interactive experience.”

17th August 2007/by Tyrepress Editors

Best of British – Dunlop teams up with Triumph

Dunlop says it is proud to be British. The tyre manufacturer’s heritage and reputation span nearly 120 years and Dunlop has played an important role in Britain’s motoring history. The company claims the distinction of being involved at every stage in the evolution of the road transport industries and national infrastructure since Dunlop’s establishment in 1888.

Dunlop recently joined forces with another great and British brand. The manufacturer’s award-winning Sportmax Qualifier D209 street tyre has been approved as the sole OE tyre on the all-new Triumph Street Triple motorcycle for 2008. The Street Triple is essentially a ‘naked’ version of Triumph’s Daytona 675, but incorporates extensive modifications including new forks and brakes. Its restyled rear end is also based on its bigger brother – the Speed Triple. The first prototype of the Street Triple was tested by Triumph’s development riders in Spain in December 2005 and volume production began in July 2007.

16th August 2007/by Tyrepress Editors

A Strong Argument in Support of Tubeless Tyres

The recent bad press surrounding Chinese made tyres and inner tubes has not deterred one man from giving Chinese tyre products his own unintended and unorthodox vote of confidence. Staking his life on the quality of a round black rubber object to an extent that few of us would dare, 41 year old Cheng Yanhua from China’s Hubei Province undertook a six week odyssey down the Yangtze River on a truck tyre inner tube.

Cheng’s adventure began on July 1, when the enthusiastic amateur adventurer embarked from the southwestern city of Chongqing. Spending at least ten hours a day on a raft that owes its origins more to John Dunlop or Andre Michelin than to any credible boat builder, Cheng paddled and drifted 3,000 kilometres down the Yangtze to Shanghai, where the river meets the Pacific ocean. And despite the absence of even the most rudimentary safety equipment and widespread flooding of the Yangtze this summer, the tyre-bound sailor completed his journey displaying few ill effects. Cheng commented that the greatest physical discomfort during his 44 days afloat came from having to tuck his legs into the inside of the ring for extended periods of time.

15th August 2007/by Tyrepress Editors

Dunlop India to Retain Factory Land – For Now

Dunlop India’s battle to retain a legitimate claim to a piece of land at its factory in Ambattur, Chennai has been given a boost by a decision made by a district court in Chennai. The court has ordered that, for the time being, the land seized by real estate company VGN Enterprises should remain in the hands of the tyremaker.

The court official, Ponneri executive magistrate and revenue district officer, M.S. Sangeeta, said in an interim order that “the impugned land should be placed in as-is-where-is condition without any change, construction, removal of machinery or apparatus and [the] status quo should be maintained.”

This interim order lends weight to the Ruia group’s argument that the sale of 60.86 acres of factory land to VGN Enterprises in 2004, a transaction made by Dunlop India’s previous owners, was illegal.

15th August 2007/by Tyrepress Editors

What the HiQ “Revolution” Looks Like

On the same day that Which? Magazine published details of disappointing car franchise dealer inspections, HiQ has started what it calls a “revolution” in fast-fit retail. According to the company, the launch represents much more than simply a new look, and is rather a completely new concept in tyre retail, designed to counter negative consumer perceptions of the industry. Currently HiQ sells in the region of 700,000 tyres, but the plan is increase this to 1.4 million during the next three years. This is mainly expected to be achieved through the expansion of its brand-new franchise network from 150 branches at the moment to 250 in three years time. Overall, Goodyear Dunlop is said to have invested a figure in the high single-digit millions of pounds into the HiQ overhaul.

10th August 2007/by Tyrepress Editors

Dunlop India Employees Bribed to Seize Factory Land

All operations at the Dunlop India facility in Ambattur, Chennai have been suspended after real estate company VGN Enterprises reportedly used force to take possession of a section of the factory land on July 30. The tyremaker notified the Bombay Stock Exchange on August 7 that it has taken this decision following the recent activities, and in a press release claimed VGN’s “illegal” act made it impossible to carry out normal manufacturing activities.

It appears that after VGN Enterprises demolished part of the factory compound wall it drew upon the assistance of some of the plant’s workforce and occupied an eight acre piece of ground, erecting its own boundary walls around this land. VGN Enterprises allegedly paid Dunlop India workers Rs 15,000 (£180) each for their complicity in the land grab.

8th August 2007/by Tyrepress Editors

Michelin to Use Pneu-Logic Tyre Inspection Technology

Michelin has signed a five-year contract that will see the French tyremaker utilise tyre inspection technology produced by Advanced ID Corporation. On August 6 the RFID technology specialist announced that its tyre division, UK based Pneu-Logic, will provide Michelin’s French reseller EDP with a hardware platform and software application specifically designed to meet the needs of Michelin’s global Business Partners. This product has been named URM and implementation of the technology has begun in more than ten European countries.

Ken Field, Pneu-Logic’s Sales Director for Europe, stated, “This is an excellent example of working with a very good reseller and Michelin to deliver a solution with substantial benefits to Michelin’s partners and customers. Based on the Pneu-Logic platform, EDP has developed the URM software to meet the exact needs of Michelin’s partners who deliver much of Michelin’s world renowned service.”

7th August 2007/by Tyrepress Editors

Dunlop India Embroiled in Factory Land Dispute

Dunlop India’s fortunes continue to slide to a new low as the company, on top of the recent cessation of production at its Sahagunj plant, becomes entangled in a land dispute. The quarrel with real estate company VGN Enterprises surrounds a small portion of the 60.86 acre Chennai plant plot auctioned off by Dunlop India in 2004 in compliance with a Board of Industrial and Financial Reconstruction (BIFR) rehabilitation scheme.

The tyremaker claims the land in question could not be sold under the BIFR scheme, however the buyer, VGB Enterprises managing director V N Devadoss, is adamant that any right Dunlop India may have once had to the land has been relinquished. VGB Enterprises paid Rs 234.4 million (£2.96 million) for the parcel of land, and plans to develop the land into an integrated township. Mr. Devadoss has supported his ownership claim with the land’s title deed, court cases settled in his favour and an affidavit filed by Dunlop India in support of the sale of the land to him.

3rd August 2007/by Tyrepress Editors

Maurice Westmacott – “Sorely Missed”

Goodyear Dunlop have regretfully announced that Maurice Westmacott, Credit Control Manager, passed away on Sunday July 29th after a painful battle with cancer, at the age of 55. Maurice was well known in the tyre industry having managed Goodyear Dunlop’s customer accounts since joining the company in 2000. He was a familiar contact for many tyre dealers and wholesalers over the last seven years. A company spokesman said: “Maurice played a major role in building a customer facing accounts team. He will be sorely missed and our thoughts are with his family – and many friends at TyreFort and in the industry.”

3rd August 2007/by Tyrepress Editors

Tyre Manufacturer Leads Chase for National Tyres

A ‘big manufacturer’ has teamed up with Robson Asset Management (RAM), a private equity company established by former Royal Bank of Scotland finance chief Jeremy Robson, to bid for National Tyres and Autocare. According to the The Times, RAM is leading in the £100 million auction. However, Reuters has reported that there was interest in the auction from Phoenix Equity Partners-backed Nationwide Autos, PAI Partners-controlled Kwik-Fit and Graphite Capital-supported Micheldever Tyre Services.

Tyre manufacturer Bridgestone narrowly missed out on a bid to purchase Kwik-Fit two years ago. Bridgestone representatives continue to be silent on the deal, explaining that their policy is not to comment on speculation. However, Michelin already owns the UK’s largest tyre retail equity, Goodyear Dunlop has put all its efforts into developing its HiQ franchise and Continental is unlikely to about face and re-buy the company it sold as a loss-making business in 2002 – leaving only Bridgestone as a likely contender.

Earlier reports had suggested that Nationwide Autos had already made a bid for National. When news of the National sale broke earlier in July, Micheldever executives flatly denied they were bidding for the company. Kwik-Fit representatives refused to comment in relation to the auction.

30th July 2007/by Tyrepress Editors

OE Brand Has A Strong Influence on Aftermarket Sales

The degree of individualisation that goes into commercial vehicles selling for six-figure sums is much higher than for passenger cars. In the world’s largest truck assembly plant, the Mercedes Benz facility in the German town of Wörth, more than 100,000 vehicles are manufactured during the course of a year, and not a single one has an identical twin. One component affected by the uniqueness of each vehicle is the tyre. When ordering a new truck the freight forwarder or fleet operator can select what tyre he would like to see fitted to his new acquisition. In the past such a choice formed an integral part of each purchase and led to the situation where Michelin held enormous quantities of shares in a number of truck manufacturers, in some cases to the extent that supply amounted to “single sourcing.”

In recent times this situation has become much less pronounced, and this shift was accompanied by Michelin declaring a change in strategy at the Commercial Vehicle IAA in 2004, indicating that they wished to shift their focus more towards the aftermarket business. Nevertheless, Michelin remains the undisputed market leader in Europe (see chart). Today, Peter Matzke (Continental’s global head of Original Equipment Truck Tires) estimates the proportion of consumers desiring a particular brand of tyre for a tractor unit or bus at somewhere between 10 and 20 per cent. This figure varies from one brand of truck to another and is also affected on whether the vehicle is intended for long distance, suburban or off the road use.

30th July 2007/by Tyrepress Editors